ACC567 : Financial Accounting - Accounting Assignment

Internal Code - MAS4387

Accounting Assignment

Topic : Investment in associates On 1 July 2015, Rules Ltd acquired 25% of the shares of Commercial Ltd for $200 000. The acquisition of these shares gave Rules Ltd significant influence over Commercial Ltd. At this date, the equity of Commercial Ltd consisted of: $ Share capital                             330 000 General reserve                        50 000 Retained earning                     220 000 At 1 July 2015, all the identifiable assets and liabilities of Commercial Ltd were recorded at amounts equal to their fair values except for: Question : Prepare the journal entries in the books of Rules Ltd to account for the investment in Commercial Ltd under the equity method for the year ended 30 June 2017. Topic : Accounting for foreign currency transactions Tassie Ltd is an Australian company with a reporting periods ending on 30 June. During the year ended 30 June 2017, Tassie Ltd purchased goods from Britania Ltd, a company based in London. On 15 March 2017, Tassie Ltd ordered goods of £300 000 from Luca Ltd under FOB London contract. On 11 May, the goods were shipped FOB London and arrived at Tassie Ltd’s warehouse on the 2 July 2017. Tassie Ltd paid the £300 000 due to Luca on the 14 August 2017. Question : 1.In accordance with AASB 121, prepare the relevant journal entries of Tassie Ltd for the years ending 30 June 2017 and 30 June 2018. 2.Assuming that, instead of goods, Tassie Ltd was purchasing plant and equipment, which is installed ready for use on 15 July 2017 when the rate is still A$1.00=42p. Prepare relevant journal entries of Tassie Ltd for the years ending 30 June 2017 and 30 June 2018.